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Faruqi & Faruqi Alerts Cardlytics Investors of Class Action Lawsuit Deadline

Faruqi & Faruqi, LLP, a prominent national securities law firm, is actively notifying investors regarding crucial developments related to Cardlytics, Inc. (NASDAQ: CDLX). The firm is currently investigating potential legal claims against Cardlytics and reminds stakeholders about the impending deadline to step forward as lead plaintiffs in a federal securities class action. This critical deadline is set for March 25, 2025.

Background on the Allegations

The firm's investigation focuses on serious allegations against Cardlytics and its management. It is alleged that they violated federal securities laws by making misleading statements and failing to disclose pertinent facts that could impact investors' decisions. Specific claims include:
1. An increase in consumer engagement resulted in a rise in consumer incentives.
2. The company was unable to elevate its billings in line with this increased consumer engagement.
3. Consequently, there was a significant risk that Cardlytics' revenue growth would either stagnate or decline.
4. Modifications made to the Average Daily Expenditure (ADE) metrics led to discrepancies in customer billing estimates.
5. Statements made by company executives regarding business performance were materially misleading or lacked reasonable accuracy.

Impact on Stock Value

On May 8, 2024, after the trading day concluded, Cardlytics disclosed that their revenue for the first quarter of 2024 saw only an 8% year-over-year increase, despite billings rising by 12% due to a 20.2% spike in consumer incentives. Following this revelation, the company’s stock price plummeted by $5.33, marking a 36.5% decline to close at $9.27 per share the next day.

The situation deteriorated further when on August 7, 2024, Cardlytics announced its second quarter results. These results revealed a staggering 9% year-over-year decline in revenue, totaling $69.6 million, and a 3% decrease in adjusted contributions to $36.4 million. Following this unsettling news, the stock plunged by $3.94, closing at $2.96 per share, equating to a 57.1% drop on August 8, 2024.

Next Steps for Investors

Faruqi & Faruqi encourages investors who experienced losses exceeding $50,000 in Cardlytics between March 14, 2024, and August 7, 2024, to reach out directly. Partner Josh Wilson is available for discussions regarding potential claims and legal rights. Interested parties can contact him at 877-247-4292 or 212-983-9330 (Ext. 1310).

Investors should note that the appointed lead plaintiff in the lawsuit will be the individual with the largest financial interest in the relief sought, who is also deemed typical of class members, and hence directs the litigation process. All members of the class have the option to move the Court to take the lead in this case or remain as absent class members. The choice to take up the role of the lead plaintiff will not affect any potential recovery from the proceedings.

Conclusion

Faruqi & Faruqi, LLP has been a leading force in protecting investor rights since its inception in 1995, having successfully recovered hundreds of millions of dollars. They emphasize the importance of this class action lawsuit and urge any individual with information about Cardlytics' actions, including whistleblowers and former employees, to come forward. For more details and updates on the Cardlytics class action, you can visit www.faruqilaw.com/CDLX or connect with Faruqi & Faruqi on social media channels.